The figures of $360 million and $770 million came from the City Assessor who
maintains a ten year projection. I didn't question him about how the
projection was done, however.
Carol Becker
Longfellow
----- Original Message -----
From: Russell Wayne Peterson <[EMAIL PROTECTED]>
To: <[EMAIL PROTECTED]>; Multiple recipients of list
<[EMAIL PROTECTED]>
Sent: Tuesday, December 05, 2000 7:27 PM
Subject: RE: TIF Funding due to decertification/Response to Ms. Del Calzo
> Once again, I appreciate Carol's answering of our questions online.
> However, I am a little confused. Can Carol or someone tell me how our tax
> capacity can almost double from $360 million to $770 million in nine
years?
> And my second question is how much of that decertified TIF money will be
> needed to pay off the NRP debt service and continue to fund NRP? And if
> there isn't enough, will we need more?
>
> Russ Peterson
> Standish
> Ward 9
>
> R U S S E L L P E T E R S O N D E S I G N
> "You can only fly if you stretch your wings."
>
> Russell W. Peterson, RA, CID
> Founder
>
> 3857 23rd Avenue South
> Minneapolis, MN 55407
>
> 612-724-2331
> [EMAIL PROTECTED]
>
> -----Original Message-----
> From: [EMAIL PROTECTED]
> [mailto:[EMAIL PROTECTED]]On Behalf Of Carol Becker
> Sent: Tuesday, December 05, 2000 8:53 PM
> To: Multiple recipients of list
> Subject: TIF Funding due to decertification/Response to Ms. Del Calzo
>
>
> Let's see if I can give an answer to the question Ms. Del Calzo asked
about
> how much money will be coming in when those TIF districts are decertified.
>
> For people who don't speak property tax lingo, tax capacity is what we
often
> refer to as the "tax base." This is a figure which is calculated using
> the estimated market value of property in the City adjusted for the type
of
> property. Tax increment financing is when we take a portion of the tax
base
> (the tax capacity) and segregate it so the revenues from those properties
go
> into a special pool rather than the general tax base that we use to pay
for
> schools, the county, and basic city services.
>
> For 2001, the city has $360 million in tax capacity. Of this, $55 million
is
> in TIF districts, or about 15%. By 2010, it is projected that the tax
base
> (tax capacity) will grow to $770 million. Currently approved projects
will
> increase the amount in TIF districts to $71 million by 2004 (9% of tax
> capacity) and remain level, assuming no other TI projects are added.
>
> In the year 2009, TIF disticts start decertifying, which means that they
> will no longer put their money into their special pool but instead put
their
> money into the general pool used to pay for schools, county services and
> city basic services. In 2009, the amount of tax capacity in tax increment
> districts will be decline from $71 million to $55 million in 2009 and $37
> million in 2010. Assuming no districts are added, more and more districts
> will decertify until the full $71 million is returned to the general tax
> base.
>
> So what does all this gibberish mean in taxes? In 2010, about half of of
> this TI will decertify. So between 2008 and 2010, taxes could be reduced
> for the general pool about 4.5% or money for services could increase by
> 4.5%. As additional districts decertify, additional money would become
> available (assuming no more TIF projects are added) until the full $71
> million is returned to the general tax pool, adding 9% overall to the tax
> base.
>
> I hope this answered the question.
>
> Carol Becker
> Longfellow
>
>
> ----- Original Message -----
> From: <[EMAIL PROTECTED]>
> To: Multiple recipients of list <[EMAIL PROTECTED]>
> Sent: Monday, December 04, 2000 6:36 PM
> Subject: Library Funding in the out years
>
>
> > I would like to thank Bob Gustafson for his insights on the financial
> matters
> > related to the Library Board. In his last post he talked about a
> shortfall
> > in the years 2008 and 2009 that the City has said they will help
address.
> >
> > All at once it dawned on me that the policy makers are already gearing
up
> to
> > spend all the money that will be released when the TIF districts are
paid
> off
> > in that time frame. That is, of course, if someone doesn't get the
> bright
> > idea to extend the life of those districts. Could someone out there,
are
> you
> > listening Carol Becker, tell us how much will be coming in when those
> > districts are decertified?
> >
> > Jan Del Calzo
> > Lynnhurst
> >
>
>
